Netflix, Inc. (NASDAQ:NFLX) made a lot of shareholders happy this week. Wall Street was betting on yet another round of impressive earnings. The company took in more subscribers in recent months. Network popularity grows with every quarter and shares soared ahead of its first quarter earnings report. Bullish behavior towards NFLX pushed its value more than 2.5 percent on Monday afternoon.
Online streaming market empowers Netflix
Over $2.5 billion was made in total streaming revenue for the first quarter of 2017. That number accounts for more than $1.4 billion from US streaming and over a $1 billion from international viewers. Compared to the same period last year, this year’s first quarter income represents a 38 percent improvement for Netflix.
“The opportunity provided to us by the growth of the global internet is gigantic,” Netflix shared on Monday. It’s quarterly revenue surpassed $2.5 billion and upscale profits instill confidence in higher returns and the profitability of streamed content.
More subscribers, more rewards
The network took in 5 million more subscribers during the first three months of the year. Netflix says it will remain fixed on dedicating more resources into streamed content. If all goes as projected, the TV content provider will continue to see more memberships, revenue and operating margins.
The international market is taking a liking to Netflix. American viewership contributed around $600 million in profits while for the first time in several quarters, foreign viewers turned out a profit as well. International subscriptions brought in $43 million in Q1. Last December only came out with a $67 million profit loss from cross-boarder viewers. The two quarters before that both landing on a $69 million profit loss.
Diversity will be key
Netflix wants to reach new realms of diversity with its content as it grows beyond American borders.
“We have high satisfaction and are rapidly growing in Latin America, Europe and North America. We are making good strides in improving our content offering to match local tastes in Asia, Middle East and Africa.” The company goes on to admit that even though things are looking good internationally, there is a lot to do before things are ideal.
A useful and more a attractive user interface
There are teams at Netflix dedicated to increasing user satisfaction. Doing away with the five-star rating systems in favor of the “thumbs up thumbs down” approach allowed the company to get better feedback on what users liked. This allows the company to provide subscribes with more personalized content.
The service is edging towards making the user experience more interactive as well. “Video for choosing video is an obvious direction,” the service provider shared this week. “But doing it well through our interface take judgement, creativity, and testing.”
Competition for Netflix
The online streaming giant does not seems all too unfazed by the rise of formidable content giants either. Netflix (NASDAQ:NFLX) feels its rivals are veering off into their own profitable markets. When asked about Amazon’s push into FNL football, the service said it feels in could achieve better viewing satisfaction by spending that much money on TV series and movies.
“Netflix is largely complementary to pay TV packages,” the service wrote on Monday. “Our focus also is on on-demand, commercial free viewing rather than live, ad-supported programming.”